Storefront Payday Lenders Issue Statement on "Misleading" Reuters Story
WASHINGTON, Jan. 19, 2012 /PRNewswire-USNewswire/ -- The following comments can be attributed to D. Lynn DeVault, Board Chair of the Community Financial Services Association of America (CFSA):
"Today's Reuters story about the payday lending industry is very misleading and sets up a conflict with related industries that simply does not exist. Its emphasis does not reflect the tone and content of the several interviews the reporter conducted with three different industry spokespersons.
"Interviews initiated by the reporter focused on basic questions about the product, the history of the industry and the consequences of restrictions. One of the consequences mentioned by spokespersons was the increased concerns by state officials of 'unlicensed, offshore' lenders. The story does not reflect this emphasis and instead accuses us of criticizing online lenders.
"To be clear, CFSA believes that online lending is an important and needed option in the small loan market and many of our member companies are engaged in state regulated online lending. It is an innovative and valuable service for millions of consumers.
"We will continue to point out the differences between highly regulated lenders and those that operate offshore and illegally. We hope reporters will learn the distinctions as well."
About the Community Financial Services Association of America
The Community Financial Services Association of America (CFSA) is the only national organization dedicated solely to promoting responsible regulation of the payday advance industry and consumer protections through CFSA's Best Practices. As such, we are committed to working with policymakers, consumer advocates, and CFSA member companies to ensure that the payday advance is a safe and viable credit option for consumers.
SOURCE The Community Financial Services Association of America (CFSA)
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